AEMC draft determinations to minimise price volatility

The AEMC has published draft rule determinations that seek to minimise price volatility for NSW and ACT customers that may occur as a result of the outcome of judicial review proceedings underway for NSW and ACT distribution network businesses.

The draft rules are more preferable rules, and allow for any increased or decreased revenue as a result of the outcome of the judicial review proceedings to be ‘smoothed’ and recovered from customers over the current regulatory control period (2014-2019) and the next regulatory control period starting on 1 July 2019.

In March 2016 the Australian Energy Regulator (AER) applied to the Federal Court for a judicial review of the Australian Competition Tribunal’s decisions on the NSW and ACT distribution network revenue determinations for the period 2014-2019.

The two rule change requests – one submitted jointly by the NSW distribution network businesses (Ausgrid, Endeavour Energy and Essential Energy) and the other submitted by ActewAGL – proposed that any revenue adjustments that may result from the outcome of the judicial review proceedings be recovered over two regulatory control periods, to minimise price volatility for customers.

Stakeholders are invited to make submissions on the draft rule determinations by 20 June 2017.

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